Mayor Landrieu, City officials and Hospital Service District Board commence construction on New Orleans East Hospital

January 11, 2013

NEW ORLEANS, LA – Today, Mayor Mitch Landrieu, City officials and the Orleans Parish Hospital Service District A (HSD) Board broke ground on the New Orleans East Hospital. When open, the full-service hospital will support many New Orleans residents and will provide economic revitalization to the New Orleans East community.

“Delivering a full service hospital to residents in New Orleans East has been a top priority of my administration,” said Mayor Landrieu. “With today’s ground breaking, we are delivering on our commitment -- a full service hospital that ensures that the citizens of New Orleans East will receive quality and timely health care in their neighborhood. We need this hospital now and we will keep pushing. I commend the Hospital Service District Board for their dedication. I will continue to work with this community until a quality, full service hospital has returned to New Orleans East.”

“I certainly know the value of having critical care close to home,” said District E Councilmember James A. Gray II. “My wife’s mother was very ill and we had no choice—we had to be near a hospital. But critical care is also critical to the economics of this community, helping physicians with various specialties rebuild their practices, helping pharmacies and restaurants and supply companies and others keep their doors open. The New Orleans East Hospital will offer a lifeline to so many segments of this community.”

Since taking office, Mayor Landrieu has worked aggressively to open a full-service hospital at the former Pendleton Memorial Methodist Hospital site. The $130 million project will restore full-service healthcare to residents in New Orleans East.

“We are happy that we remain on track and on task. The groundbreaking paves the way for a first class hospital for the citizens of New Orleans East, the Lower Ninth Ward, and Gentilly,” said Ronnie Burns, Chairman of the HSD Board. “I look forward to continuing my work with the Mayor to restore a full service hospital for our community.”

“Congratulations to the city on today’s groundbreaking. The new hospital will provide much-needed services to the New Orleans East community and will resist damages from future storms through mitigation efforts,” said FEMA’s Louisiana Recovery Office Deputy Director of Programs Andre Cadogan. “As the city moves closer to full recovery, FEMA remains steadfast in aiding local recovery endeavors through the coordination of federal taxpayers’ dollars.”

“Today’s groundbreaking is a high point in our unrelenting progress towards providing healthcare through this full service hospital to New Orleans East,” said Health Commissioner Dr. Karen DeSalvo. “We have been working with a singular focus towards our goal of a full-service hospital because the residents in New Orleans East deserve no less. This is certainly a high point in our progress – but we will not rest until patients are being treated again in a new full-service hospital located in New Orleans East.”

"I'm extremely excited for today's ground breaking,” said State Senator J.P. Morrell, District 3. “This is the culmination of several years of hard work and a testament to the patience and perseverance of the people of New Orleans East. The New Orleans Delegation has fought for the millions of dollars necessary to make this hospital a reality and we're happy to have been a partner with the Landrieu administration in delivering on promises made to this community."

“Bringing a full service hospital to the people of New Orleans East has been a top priority for myself and for Mayor Landrieu,” said State Senator Edwin Murray, District 4. “I am doubly proud after serving as the Mayor’s floor leader in the Senate to have been able to get bills passed that have brought us to this pivotal moment that will result in the completion of a major healthcare facility for a community that greatly deserves it.”

State Representative Austin Badon, District 100 said, “This has been the top priority for all residents of New Orleans East since the devastating storms of 2005. It is with great anticipation that a full service hospital is returning to New Orleans East. This hospital will serve as a much needed catalyst for the revitalization of New Orleans East as well as the surrounding community’s by resurrecting a 24 hour medical facility as well as serving as an economic engine that will bring construction, healthcare and other ancillary forms of employment to the New Orleans East community.”

State Rep. Jared Brossett, District 97, said "Today marks a critical step in delivering quality healthcare accommodations to the citizens of New Orleans East. This hospital, which is being made possible through the collaborative efforts of the Mayor, Legislature, Hospital Service District Board and the community, will restore a much needed medical infrastructure, create jobs and save lives."

"We have worked extremely hard to keep the promise that we made to the residents of New Orleans East and the Ninth Ward,” said State Rep. Wesley Bishop, District 99. “The groundbreaking for a new hospital is a vital step in the right direction as we continue to raise the quality of life in this area and finally provide health care services that are long overdue."

The 16+ acre site owned by the Hospital Service District is being redeveloped with renovation of the existing 6-Story East Tower. The new construction will include a 71,700 square foot Patient Care Pavilion that will accommodate an emergency department, imaging and surgical suites and laboratory. The renovated 133,640 square foot existing East Tower will accommodate the Hospital’s lobby, cafeteria, chapel, and administrative offices. Patient rooms will also be located in the renovated East Tower along with the intensive care unit, diagnostic testing, pre and post operating and recovery, clinical lab and the hospital’s pharmacy.

Major progress has been made towards the building of the new hospital. Since last year, $26 million in new funds has been acquired for the hospital. Earlier this year, the US Department of Housing and Urban Development approved a HUD 242 Loan Guaranty. Design drawings for the facility have been completed and construction documents have been developed. Renderings for the hospital are attached.

In November of 2012, the demolition and removal of portions of the existing hospital complex began. DURR Heavy Construction, LLC is performing the demolition of the existing structure, which primarily includes buildings located on the west side of the complex. These buildings consist of one, two, three and six story buildings originally built in 1967. The demolition scope also includes removal of interior components in the East Tower. The General Contractor on the project is the Lemoine Company.

New Orleans East Hospital Funding:

Community Development Block Grants: $49,802,733.05

Health Resources and Services Administration: $990,000

Robert Wood Johnson Foundation: $50,000

Federal Emergency Management Agency: $8,394,305

FHA 242 Insured Loan: $97,604,300

Capital Outlay: $15,120,000

Johnson & Johnson Foundation: $1,000,000

Daughters of Charity: $2,000,000

City of New Orleans: $3,000,000

Since 2010, the City of New Orleans and the HSD have accomplished many milestones in the quest to complete this project:

Appointed new board members to the Hospital Service District Board (HSD).

Announced an agreement with Universal Health Services to purchase the former Methodist Hospital site for $16.25 million, saving taxpayers $23.75 million in real estate deal. The City closed on this deal on August 20, 2010.

Announced an agreement with Daughters of Charity and Franciscan Missionaries of Our Lady to operate the hospital, with a $2 million commitment from the Daughters of Charity Foundation.